When starting up the computer I get the option to start in SAFE MODE etc but this just takes me to a blue screen. If I ignore the option I get the following error message:
I always start with these types of hardware problems by replacing the suspected failed component, but keeping the old hardware around. So install the new hard drive, and then once your computer is up and running, you can try to connect the old SATA drive and see if there is anything you can do about recovery.